The Lewiston Company fails to accrue $100 for one day's wage expense at 12/31/22. These wages plus wages of two days in the new year are paid on 1/2/23. Total cash paid is $300. The following journal entry is made on 1/2/23:

Wage Expense$300Cash$300

Indicate the errors for 12/31/22 Retained Earnings and 2023 Wage Expense, respectively.

Select one:

a.No Error and Overstated

b.Overstated and Overstated

c.Understated and No Error

d.No Error and Understated